In early 2026, the cryptocurrency market experienced a sharp drop in the number of new XRP addresses created, raising questions about the network’s growth and overall market sentiment. Data from XRP Scan reveals that daily address creation fell from 3,169 on January 1 to just 1,100 by January 12, marking a significant 65.28% decline in less than two weeks. This trend appears to be a continuation of a broader network slowdown observed in 2025, where the token saw a net decrease of 19,588 addresses, concluding the year with a total of 7,913,554 addresses.
The Significance of XRP Address Decline
This contraction in network activity is a critical indicator for traders and investors. Fewer new XRP addresses suggest lower transaction activity, diminished speculative interest, and reduced inflows of fresh capital into the ecosystem. Historically, increased address creation correlates with higher prices as demand and user participation rise. Conversely, declines such as this often result in softer price action and heightened risk of consolidation.
The market data highlights that XRP’s network growth peaked around January 5–6 before reversing rapidly. By press time, XRP was trading at $2.06, down over 2% in the past 24 hours, while the weekly chart reflects more than a 4% decline. The token is currently hovering near its 50-day simple moving average (SMA) at $2.03, indicating a lack of strong directional momentum.
Current Market Sentiment
The state of the cryptocurrency market in early 2026 reflects broader investor caution. The XRP decline aligns with this market-wide prudence, where traders and institutions are becoming increasingly selective about investment opportunities. Despite XRP’s struggle to maintain the critical $2 support zone, its 14-day relative strength index (RSI) at 52.7 points to neutral territory, neither overbought nor oversold.
How Traders Can Respond
For crypto traders, the key takeaway from these trends is the importance of monitoring network growth alongside price action. While the broader market conditions play a significant role, improved on-chain activity is crucial for supporting XRP’s price recovery. For those looking to invest during periods of consolidation, platforms like eToro, offering access to cryptocurrencies and stocks, can be an excellent resource for diversifying portfolios.
What’s Next for XRP?
Absent a significant recovery in address creation and broader on-chain growth, XRP’s price movement will likely depend on external market factors rather than inherent network momentum. The token remains well below its 200-day SMA of $2.56, signaling that the long-term trend is still bearish. However, a rebound in organic demand and retail participation could shift the trend positively, creating new opportunities for investors in the cryptocurrency space.
The current dip provides a moment of reflection for traders and investors to reassess market strategies and focus on long-term growth indicators, particularly in the highly volatile cryptocurrency landscape. Keep tracking on-chain metrics and leverage reliable platforms to make informed investment decisions.
